BioAge Labs, Inc. (NASDAQ: BIOA) is facing a class action lawsuit filed on behalf of investors who purchased or acquired BioAge securities pursuant to the company's initial public offering (IPO) on or about September 26, 2024. The lawsuit, filed in the United States District Court for the Northern District of California, follows BioAge's announcement that it would discontinue its Phase 2 STRIDES trial for azelaprag, its lead product candidate.
The decision to halt the trial, announced on December 6, 2024, was attributed to safety concerns arising from elevated liver transaminase levels observed in participants. This development was unexpected, as BioAge had previously highlighted azelaprag's potential in patients undergoing obesity therapy with incretin drugs during its IPO.
Impact on Stock Price
The announcement of the trial's discontinuation had an immediate and significant impact on BioAge's stock price. On December 6, 2024, the stock closed at $20.09 per share. By the following day, December 7, 2024, the price had plummeted to $4.65 per share, representing a substantial loss for investors.
Azelaprag's Potential and the STRIDES Trial
Azelaprag was BioAge's leading drug candidate and was being investigated for its potential therapeutic effects. The Phase 2 STRIDES trial was designed to evaluate its efficacy and safety. The discontinuation of this trial represents a setback for BioAge's clinical development program.
Legal Recourse for Investors
Several law firms, including Bragar Eagel & Squire, P.C. and Levi & Korsinsky, have announced the class action lawsuit and are seeking to represent affected shareholders. Investors who suffered losses in BioAge stock are encouraged to contact these firms to learn more about their rights and potential recovery options. The deadline to apply to the Court to be appointed as lead plaintiff in the lawsuit is March 10, 2025.
